The Best Strategies For Earning On Cryptocurrency With DotBig

How to Make Money on Cryptocurrency?

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by Alan Jackson — 3 weeks ago in Blockchain Technology 4 min. read
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Trading cryptocurrencies with successful hands allows you to get profitability of several hundred percent per annum. But if all the risks are realized, you can lose all your invested capital. There are proven strategies and hard hedging of all risks in the cryptocurrency market. Let’s try to figure out whether it is possible to make money on cryptocurrency and how much such earnings can make. Find out more about How to make money on cryptocurrency.

Is It Possible to Make Money on Cryptocurrency?

Cryptocurrency trading on the stock exchange is a business with its own risks and rewards, where every decision either brings income or leads to losses. Earnings on cryptocurrency are determined by several indicators, and in professional trading, it depends only on the size of the deposit.

The main thing to understand if you are going to make money on cryptocurrency is that your money can disappear at any moment. There is no guarantee that at some point the market will not collapse. In general, there are three ways to make a profit: trading (two directions – holding and trading), mining, and ICO.

To succeed in investments of this kind, special attention should be paid to studying the current quotes of cryptocurrencies. At the moment, you can easily get into a difficult situation with fake currencies, which are more like a pyramid scheme. Verified cryptocurrencies include:

  • Ethereum. This asset has been actively developed since its inception.
  • Bitcoin. It is one of the most liquid cryptocurrencies. Investors during the investment of funds received more than 120% per annum.
  • Monero. This asset has the main advantage over other cryptocurrencies, it is the anonymity of users and transactions.
  • factom. It is based on a blockchain, which ensures the safety of data.

why invest in cryptocurrency? This is a modern asset that will be in the public eye for a very long time and remain attractive to investors.

Cryptocurrency Earning Strategies

There are many ways to make money on cryptocurrency and generate income in the crypto space. At the same time, one should take into account the high volatility of crypto assets, due to which the risks in this industry are also high, in addition, this area requires certain knowledge and experience.

Investors working for the medium or long term use several profitable strategies at once:

  • portfolio investments with the formation of a set of profitable coins;
  • hodling – passive investment: you keep coins in your wallet until they reach the planned profitability;
  • staking is the storage of a cryptocurrency with a commission in a wallet that is used to support the blockchain network;
  • mining is a way to make money on cryptocurrency by mining coins on specialized equipment;
  • a hodling option with an investment in promising tokens in the hope of their explosive growth;
  • use of referral programs.

Each strategy has its own characteristics, but the most popular option for making money on cryptocurrencies is portfolio investment with brokers, including DotBig.

What do Experts Think About Making Money on Cryptocurrencies?

Expert opinion differs when it comes to investing in crypto. For some, this is still a speculative asset, which is not worth the risk. But there are those who believe that it is worth making a crypto good investment. Here’s what many famous entrepreneurs say:

Elon Musk, founder and CEO of Tesla and SpaceX – “I hope that cryptocurrencies, in general, will increase the efficiency of the information system that we call money. If the efficiency of money increases and there are fewer errors in the system, then this in itself will lead to an increase in the quality of life and an increase in the power of each individual, which I very much support.”

Paul Graham, Founder, and CEO of Y Combinator – “Possible future scenario: Credit card banks are becoming more and more rigorous about what transactions they process. This motivates the general public to pay with cryptocurrencies, which will eventually kill credit cards.”

Cathy Wood, CEO of Ark Invest – “Growing markets are suffering from huge inflation. Cryptocurrency will be able to protect against this. In other words, the purchasing power of the population in these markets is declining. To keep it, people will simply switch to bitcoin and other tools.”

It is worth noting that the past year showed that you can earn up to 200% profit on cryptocurrency investment. However, not only investments in cryptocurrencies can be profitable. You will learn more about how to make money on this asset below.

Is It Possible to Make Money on Cryptocurrency?

cryptocurrency investment is a risky way to make money. However, in skillful hands, you can earn a lot of money on cryptocurrency. Let’s see what are the ways to increase your capital. We will identify the riskiest options and answer the question: is it really possible for beginners to make money on cryptocurrency, or is it only for professionals?

Even as a beginner, you can make real profits from investing in cryptocurrencies. It is, like trading, buying a cryptocurrency at a lower price and selling it at a higher one. With one important caveat. Investments are long-term investments. If traders usually buy and sell different cryptocurrencies daily, then investors buy, for example, Bitcoin, and store it in the medium or long term: six months, a year, three, or ten.

This option is ideal for beginners. It is not profitable here and now, but it is safer. Over the years, you can get no less percentage of profit than traders who work every day. And to pick up a good cryptocurrency asset, use the services of a cryptocurrency broker DotBig LTD. This is a reliable broker that has auxiliary tools for successful trading. Below you can find frequently asked questions from investors.

FAQ

What is The Best Cryptocurrency to Invest in?

Pay attention to the following cryptocurrencies:

  1. siacoin
  2. Lisk
  3. Ripple
  4. Steem
  5. Zcash

Is It Worth Investing in Crypto Now?

Every day new crypto assets appear, but not all of them survive in this competitive market. If you decide to invest in digital currencies, then now is the best time for this.

What is The Most Profitable Investment Strategy?

Investing through an exchange is a more profitable strategy for investing in cryptocurrency. Why is cryptocurrency a good buy on exchanges? This is a long-term investment that will bring good returns.

Alan Jackson

Alan is content editor manager of The Next Tech. He loves to share his technology knowledge with write blog and article. Besides this, He is fond of reading books, writing short stories, EDM music and football lover.

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